Tenders worth $1.5bn to be launched in 2012
State-upstream operator, Kuwait Oil Company (KOC) plans to launch tenders worth an estimated $1.5bn for three new crude oil gathering centres in 2012.
The planned centres are in the north of the country and are numbered 29, 30 and 31. They are currently still in the planning and design stage, with construction tenders expected to be released in early 2012.
The studies are being carried out by one of three firms that signed five-year, in-house management contracts with KOC in late 2007 and early 2008; the UK’s Amec, the US’ Flour Corporation and Australia’s WorleyParsons. Under the deals, the companies provide KOC with front-end engineering and design (feed) and project management consultancy services.
Gathering centres serve as a collection location for crude oil produced at several wells connected by flowlines, providing initial treatment through the separation of associated gas and removing salt. They also provide an intermediate storage facility before the crude is pumped.
Oil Minister, Mohammad al-Busairi, says the country is currently producing an average of 2.5-2.7 million barrels a day (b/d). Kuwait plans to increase its total oil production capacity to 4 million b/d by 2020, which will include 3.65 million b/d from KOC, with the remainder from Kuwait Gulf Oil Company’s operations in the divided zone with Saudi Arabia (MEED 3:12:10).
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